Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | ICLR |
Entity Registrant Name | ICON PLC |
Entity Central Index Key | 1,060,955 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 235,248 | $ 118,900 |
Short term investments - available for sale | 81,739 | 97,100 |
Accounts receivable, net | 386,590 | 370,956 |
Unbilled revenue | 195,646 | 146,163 |
Other receivables | 27,349 | 17,491 |
Deferred tax asset | 31,305 | 24,716 |
Prepayments and other current assets | 39,931 | 28,465 |
Income taxes receivable | 19,220 | 15,716 |
Total current assets | 1,017,028 | 819,507 |
Other Assets: | ||
Property, plant and equipment, net | 148,835 | 148,185 |
Goodwill | 575,378 | 463,324 |
Non-current other assets | 11,271 | 11,583 |
Non-current income taxes receivable | 14,673 | 15,060 |
Non-current deferred tax asset | 6,766 | 21,472 |
Intangible assets | 38,841 | 49,719 |
Total Assets | 1,812,792 | 1,528,850 |
Current Liabilities: | ||
Accounts payable | 4,528 | 2,793 |
Payments on account | 294,774 | 280,097 |
Other liabilities | 239,556 | 251,091 |
Bank credit lines and loan facilities | 350,000 | |
Deferred tax liability | 185 | 229 |
Income taxes payable | 20,608 | 4,149 |
Total current liabilities | 909,651 | 538,359 |
Other Liabilities: | ||
Non-current other liabilities | 15,445 | 13,179 |
Non-current government grants | 1,002 | 1,116 |
Non-current income taxes payable | 12,929 | 12,389 |
Non-current deferred tax liability | 10,499 | 13,601 |
Shareholders' Equity: | ||
Ordinary shares, par value 6 euro cents per share; 100,000,000 shares authorized, 57,234,463 shares issued and outstanding at September 30, 2015 and 60,106,780 shares issued and outstanding at December 31, 2014 | 4,832 | 5,037 |
Additional paid-in capital | 372,614 | 327,234 |
Capital redemption reserve | 556 | 305 |
Accumulated other comprehensive income | (58,193) | (37,555) |
Retained earnings | 543,457 | 655,185 |
Total Shareholders' Equity | 863,266 | 950,206 |
Total Liabilities and Shareholders' Equity | $ 1,812,792 | $ 1,528,850 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Ordinary shares, par value | € 0.06 | € 0.06 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 57,234,463 | 60,106,780 |
Ordinary shares, shares outstanding | 57,234,463 | 60,106,780 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Gross revenue | $ 557,095 | $ 519,127 | $ 1,584,559 | $ 1,502,075 |
Reimbursable expenses | (162,354) | (131,538) | (412,930) | (388,832) |
Net revenue | 394,741 | 387,589 | 1,171,629 | 1,113,243 |
Costs and expenses: | ||||
Direct costs | 226,555 | 229,963 | 679,593 | 673,291 |
Selling, general and administrative expense | 82,435 | 84,466 | 243,310 | 251,036 |
Depreciation and amortization | 14,366 | 13,737 | 42,535 | 38,207 |
Total costs and expenses | 323,356 | 328,166 | 965,438 | 962,534 |
Income from operations | 71,385 | 59,423 | 206,191 | 150,709 |
Interest income | 531 | 267 | 1,026 | 874 |
Interest expense | (1,178) | (158) | (1,686) | (712) |
Income before provision for income taxes | 70,738 | 59,532 | 205,531 | 150,871 |
Provision for income taxes | (9,196) | (9,216) | (29,534) | (23,577) |
Net income | $ 61,542 | $ 50,316 | $ 175,997 | $ 127,294 |
Net income per Ordinary Share: | ||||
Basic | $ 1.05 | $ 0.81 | $ 2.95 | $ 2.06 |
Diluted | $ 1.02 | $ 0.79 | $ 2.85 | $ 2.01 |
Weighted average number of Ordinary Shares outstanding: | ||||
Basic | 58,659,782 | 61,878,429 | 59,728,608 | 61,863,332 |
Diluted | 60,369,898 | 63,442,607 | 61,785,849 | 63,434,260 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 175,997 | $ 127,294 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss/(profit) on disposal of property, plant and equipment | 7 | (85) |
Depreciation expense | 30,037 | 30,794 |
Amortization of intangibles | 12,498 | 7,413 |
Amortization of grants | (29) | (201) |
Share-based compensation expense | 24,043 | 16,396 |
Deferred taxes | (749) | (1,509) |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (7,817) | (7,374) |
Increase in unbilled revenue | (50,707) | (8,704) |
Increase in other receivables | (10,701) | (1,034) |
Increase in prepayments and other current assets | (11,718) | (6,562) |
Decrease/(increase) in other non-current assets | 272 | (829) |
Increase/(decrease) in payments on account | 10,615 | (34,331) |
Decrease in other current liabilities | (20,363) | (18,860) |
Increase in other non-current liabilities | 1,843 | 1,134 |
Increase/(decrease) in income taxes payable | 9,097 | (698) |
Increase/(decrease) in accounts payable | 1,102 | (8,114) |
Net cash provided by operating activities | 163,427 | 94,730 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (36,255) | (22,602) |
Purchase of subsidiary undertakings | (102,756) | (121,101) |
Cash acquired with subsidiary undertakings | 3,518 | |
Purchase of short term investments | (9,652) | (57,102) |
Sale of short term investments | 25,170 | 100,547 |
Net cash (used in) investing activities | (123,493) | (96,740) |
Cash flows from financing activities: | ||
Drawdown of bank credit lines and loan facilities | 350,000 | |
Proceeds from exercise of share options & restricted share units | 18,375 | 18,615 |
Share issuance costs | (6) | (16) |
Tax benefit from the exercise of share options | 3,014 | 1,789 |
Repurchase of ordinary shares | (286,923) | (44,506) |
Share repurchase costs | (802) | (33) |
Net cash (used in)/provided by financing activities | 83,658 | (24,151) |
Effect of exchange rate movements on cash | (7,244) | (2,782) |
Net (decrease)/increase in cash and cash equivalents | 116,348 | (28,943) |
Cash and cash equivalents at beginning of period | 118,900 | 182,519 |
Cash and cash equivalents at end of period | $ 235,248 | $ 153,576 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity and Comprehensive Income - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Capital Redemption Reserve | Accumulated Other Comprehensive Income | Retained Earnings |
Balance (in shares) at Dec. 31, 2014 | 60,106,780 | 60,106,780 | ||||
Balance at Dec. 31, 2014 | $ 950,206 | $ 5,037 | $ 327,234 | $ 305 | $ (37,555) | $ 655,185 |
Comprehensive Income: | ||||||
Net income | 175,997 | 175,997 | ||||
Currency translation adjustment | (29,914) | (29,914) | ||||
Currency impact of long term funding | 12,236 | 12,236 | ||||
Tax on currency impact of long term funding | (3,175) | (3,175) | ||||
Unrealized capital gain - investments | 215 | 215 | ||||
Total comprehensive income | 155,359 | (20,638) | 175,997 | |||
Exercise of share options (in shares) | 686,467 | |||||
Exercise of share options | 18,360 | $ 46 | 18,314 | |||
Issue of restricted share units (in shares) | 227,805 | |||||
Issue of restricted share units | 15 | 15 | ||||
Share issuance costs | (6) | (6) | ||||
Non-cash stock compensation expense | 24,043 | 24,043 | ||||
Repurchase of ordinary shares (in shares) | (3,786,589) | |||||
Repurchase of ordinary shares | (286,923) | $ (251) | 251 | (286,923) | ||
Share repurchase costs | (802) | (802) | ||||
Tax benefit on exercise of options | $ 3,014 | 3,014 | ||||
Balance (in shares) at Sep. 30, 2015 | 57,234,463 | 57,234,463 | ||||
Balance at Sep. 30, 2015 | $ 863,266 | $ 4,832 | $ 372,614 | $ 556 | $ (58,193) | $ 543,457 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | 1. Basis of Presentation These condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”), have not been audited. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the operating results and financial position for the periods presented. The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures in the condensed consolidated financial statements. Actual results could differ from those estimates. The condensed consolidated financial statements should be read in conjunction with the accounting policies and notes to the consolidated financial statements included in ICON’s Form 20-F for the year ended December 31, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal period ending December 31, 2015. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill | 2. Goodwill Nine months ended Year ended September 30, December 31, 2015 2014 (in thousands) Opening balance $ 463,324 $ 357,523 Current period acquisitions (Note 3) 115,180 121,209 Prior period acquisitions 4,418 - Foreign exchange movement (7,544 ) (15,408 ) Closing balance $ 575,378 $ 463,324 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations | 3. Business Combinations Acquisitions - MediMedia Pharma Solutions. On February 27, 2015 the Company acquired MediMedia Pharma Solutions for a total cash consideration of $120.0 million including certain payments to be made on behalf of the company on completion totalling $14.9 million. Headquartered in Yardley, Pennsylvania, MediMedia Pharma Solutions includes MediMedia Managed Markets and Complete Healthcare Communications. MediMedia Managed Markets is a leading provider of strategic payer-validated market access solutions. Complete Healthcare Communications is one of the leading medical and scientific communication agencies working with medical affairs, commercial and brand development teams within life science companies. The acquisition agreement also provides for certain working capital targets to be achieved by MediMedia Pharma Solutions on acquisition. The Company has withheld a provisional amount of $3.6 million on acquisition pending completion of this review. During the three months ended September 30, 2015 a further $383,000 was returned to the Company on completion of the review. The acquisition of MediMedia Pharma Solutions has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations. The following table summarizes the Company’s provisional estimates of the fair values of the assets acquired and liabilities assumed: February 27 2015 (In thousands) Property, plant and equipment $ 1,049 Goodwill* 115,180 Accounts receivable 5,240 Unbilled Revenue 4,324 Prepayments and other current assets 621 Accounts payable (749 ) Payments on account (4,186 ) Other liabilities (16,760 ) Net assets acquired $ 104,719 Cash consideration $ 120,000 Adjustments to cash consideration ** (11,283 ) Working capital adjustment (3,998 ) Net purchase consideration $ 104,719 * Goodwill represents the acquisition of an established workforce with experience in the provision of strategic payer-validated market access solutions while the acquisition of Complete Healthcare Communications comprises an established workforce with significant communication experience working with medical affairs, commercial and brand development teams within the life science industry. ** Adjustments to cash consideration represents certain one-time liabilities at the acquisition date which have subsequently been paid. Prior Period Acquisitions – Aptiv Solutions On May 7, 2014 the Company acquired 100% of the common stock of Aptiv Solutions (“Aptiv”), a global biopharmaceutical and medical device development services company and leader in adaptive clinical trials for a cash consideration of $143.5 million including certain payments to be made on behalf of the company on completion totalling $22.4 million. Aptiv offers full-service clinical trial consulting and regulatory support for drugs, medical devices and diagnostics with a specific focus on strategy to increase product development efficiency and productivity. It is a market leader in the integrated design and execution of adaptive clinical trials for exploratory and late phase development as well as being an industry leader in medical device and diagnostic development in key medical technology segments. The acquisition agreement also provided for certain working capital targets to be achieved by Aptiv on completion. On March 25, 2015 the Company received $1.9 million on completion of this review. The acquisition of Aptiv Solutions has been accounted for as a business combination in accordance with FASB ASC 805 Business Combinations. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed May 7 2014 (In thousands) Property, plant and equipment $ 6,924 Goodwill* 125,627 Intangible asset – customer relationships 21,400 Intangible asset – order backlog 7,900 Cash and cash equivalents 3,484 Accounts receivable 25,091 Unbilled Revenue 21,154 Prepayments and other current assets 4,180 Non-current assets 2,911 Accounts payable ( 9,565 ) Other liabilities (26,782 ) Payments on account (31,094 ) Non-current other liabilities (11,303 ) Loan notes payable (20,790 ) Net assets acquired $ 119,137 Cash consideration $ 143,500 Adjustments to cash consideration ** (22,399 ) Working capital adjustment (1,964 ) Net purchase consideration $ 119,137 * Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. ** Adjustments to cash consideration represent certain one-time liabilities (including loan notes) identified at the acquisition date which have subsequently been paid. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | 4. Income Taxes Income taxes recognized during the three and nine months ended September 30, 2015 comprise: Three Months Ended Nine Months Ended September September September September 30, 30, 30, 30, 2015 2014 2015 2014 (In thousands) (In thousands) Provision for income taxes $ 9,196 $ 9,216 $ 29,534 $ 23,577 As at September 30, 2015 the Company maintains a $28.6 million liability (December 31, 2014: $25.6 million) for unrecognized tax benefit, which is comprised of $25.6 million (December 31, 2014: $23.2 million) related to items generating unrecognized tax benefits and $3.0 million (December 31, 2014: $2.4 million) for interest and related penalties to such items. The Company recognizes interest accrued on unrecognized tax benefits as an additional income tax expense. The Company has analyzed filing positions in all of the significant federal, state and foreign jurisdictions where it is required to file income tax returns, as well as open tax years in these jurisdictions. The only periods subject to examination by the major tax jurisdictions where the Company does business are 2009 through 2014 tax years. The Company does not believe that the outcome of any examination will have a material impact on its financial statements. |
Net income per ordinary share
Net income per ordinary share | 9 Months Ended |
Sep. 30, 2015 | |
Net income per ordinary share | 5. Net income per ordinary share Basic net income per ordinary share has been computed by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share is computed by adjusting the weighted average number of ordinary shares outstanding during the period for all potentially dilutive ordinary shares outstanding during the period and adjusting net income for any changes in income or loss that would result from the conversion of such potential ordinary shares. There is no difference in net income used for basic and diluted net income per ordinary share. The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 58,659,782 61,878,429 59,728,608 61,863,332 Effect of dilutive share options outstanding 1,710,115 1,564,178 2,057,241 1,570,928 Weighted average number of ordinary shares for diluted net income per ordinary share 60,369,898 63,442,607 61,785,849 63,434,260 |
Share-based Awards
Share-based Awards | 9 Months Ended |
Sep. 30, 2015 | |
Share-based Awards | 6. Share-based Awards Share Options On July 21, 2008 the Company adopted the Employee Share Option Plan 2008 (the “2008 Employee Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any employee, or any director holding a salaried office or employment with the Company or a Subsidiary for the purchase of ordinary shares. On the same date, the Company also adopted the Consultants Share Option Plan 2008 (the “2008 Consultants Plan”), pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may grant options to any consultant, adviser or non-executive director retained by the Company or any Subsidiary for the purchase of ordinary shares. Each option granted under the 2008 Employee Plan or the 2008 Consultants Plan (together the “2008 Option Plans”) will be an employee stock option, or NSO, as described in Section 422 or 423 of the Internal Revenue Code. Each grant of an option under the 2008 Options Plans will be evidenced by a Stock Option Agreement between the optionee and the Company. The exercise price will be specified in each Stock Option Agreement, however option prices will not be less than 100% of the fair market value of an ordinary share on the date the option is granted. An aggregate of 6.0 million ordinary shares have been reserved under the 2008 Employee Plan, as reduced by any shares issued or to be issued pursuant to options granted under the 2008 Consultants Plan, under which a limit of 400,000 shares applies. Further, the maximum number of ordinary shares with respect to which options may be granted under the 2008 Employee Option Plan, during any calendar year to any employee shall be 400,000 ordinary shares. There is no individual limit under the 2008 Consultants Plan. No options may be granted under the 2008 Option Plans after July 21, 2018. On January 17, 2003 the Company adopted the Share Option Plan 2003 (the “2003 Share Option Plan”) pursuant to which the Compensation and Organization Committee of the Board could grant options to officers and other employees of the Company or its subsidiaries for the purchase of ordinary shares. An aggregate of 6.0 million ordinary shares were reserved under the 2003 Share Option Plan; and, in no event could the number of ordinary shares issued pursuant to options awarded under this plan exceed 10% of the outstanding shares, as defined in the 2003 Share Option Plan, at the time of the grant, unless the Board expressly determined otherwise. Further, the maximum number of ordinary shares with respect to which options could be granted under the 2003 Share Option Plan during any calendar year to any employee was 400,000 ordinary shares. The 2003 Share Option Plan expired on January 17, 2013. No new options may be granted under this plan. Share option awards are granted with an exercise price equal to the market price of the Company’s shares at date of grant. Share options typically vest over a period of five years from date of grant and expire eight years from date of grant. The maximum contractual term of options outstanding at September 30, 2015 is eight years. The following table summarizes option activity for the nine months ended September 30, 2015: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2014 2,227,700 $ 28.00 $ 10.40 Granted 259,059 $ 68.25 $ 19.75 Exercised (686,467 ) $ 26.58 $ 10.18 Forfeited (64,842 ) $ 24.59 $ 9.48 Outstanding at September 30, 2015 1,735,450 $ 34.64 $ 11.91 4.85 Exercisable at September 30, 2015 695,902 $ 25.19 $ 9.71 3.51 The Company has outstanding options with fair values ranging from $5.88 to $19.78 per option or a weighted average fair value of $11.91 per option The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2015: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Non vested outstanding at December 31, 2014 1,203,150 $ 30.54 $ 10.98 Granted 259,059 $ 68.25 $ 19.75 Vested (379,992 ) $ 28.25 $ 10.49 Forfeited (42,669 ) $ 25.19 $ 10.20 Non vested outstanding at September 30, 2015 1,039,548 $ 40.97 $ 13.38 Fair value of Stock Options Assumptions The weighted average fair value of options granted during the nine months ended September 30, 2015 and September 30, 2014 was calculated using the Black-Scholes option pricing model. The weighted average fair values and assumptions used were as follows: Nine Months Ended September 30, September 30, 2015 2014 Weighted average fair value $ 19.75 $ 15.51 Assumptions: Expected volatility 30 % 31 % Dividend yield 0 % 0 % Risk-free interest rate 1.58 % 1.66 % Expected life 5 years 5 years Expected volatility is based on the historical volatility of our common stock over a period equal to the expected term of the options; the expected life represents the weighted average period of time that options granted are expected to be outstanding given consideration to vesting schedules and our historical experience of past vesting and termination patterns. The risk-free rate is based on the U.S. government zero-coupon bonds yield curve in effect at time of the grant for periods corresponding with the expected life of the option. Restricted Share Units and Performance Share Units On July 21, 2008 the Company adopted the 2008 Employees Restricted Share Unit Plan (the “2008 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any director holding a salaried office or employment with the Company, or a Subsidiary to receive an award under the plan. An aggregate of 1.0 million ordinary shares have been reserved for issuance under the 2008 RSU Plan. On April 23, 2013 the Company adopted the 2013 Employees Restricted Share Unit Plan (the “2013 RSU Plan”) pursuant to which the Compensation and Organization Committee of the Company’s Board of Directors may select any employee, or any director holding a salaried office or employment with the Company, or a Subsidiary to receive Restricted Share Units (“RSUs”) and/or Performance Share Units (“PSUs”) under the plan. An aggregate of 1.6 million ordinary shares have been reserved for issuance under the 2013 RSU Plan. The shares are awarded at zero cost and vest over a service period. Awards under the 2013 RSU Plan may be settled in cash or shares at the option of the Company. The Company has awarded RSUs and PSUs to certain key individuals of the Group. The following table summarizes RSU and PSU activity for the nine months ended September 30, 2015: PSU Outstanding Number of Shares PSU Weighted Average Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2014 669,171 $ 39.78 1.77 1,038,996 $ 35.19 1.67 Granted 283,394 $ 68.06 383,169 $ 66.94 Shares vested - - (227,805 ) $ 25.32 Forfeited (16,147 ) $ 42.73 (61,555 ) $ 41.85 Outstanding at September 30, 2015 936,418 $ 48.34 1.72 1,132,805 $ 47.55 1.67 PSUs were awarded to certain key executives of the Company during the period ended September 30, 2015. PSUs vest based upon both a service basis and performance basis. The performance element is contingent upon cumulative EPS performance of the Company over a three year period (i.e. for the three year financial period ending December 31, 2018). PSUs with similar EPS performance targets were awarded during the years ended December 31, 2013 and December 31, 2014. 467,991 of the 936,418 PSUs outstanding at September 30, 2015 vest upon the achievement of EPS performance targets. Non-cash stock compensation expense Non-cash stock compensation expense for the three and nine months ended September 30, 2015 has been allocated as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Direct costs $ 4,976 $ 3,661 $ 12,942 $ 9,034 Selling, general and administrative 4,055 2,984 11,101 7,362 Total compensation costs $ 9,031 $ 6,645 $ 24,043 $ 16,396 Total non-cash stock compensation expense not yet recognized at September 30, 2015 amounted to $57.7 million. The weighted average period over which this is expected to be recognized is 2.5 years. Total tax benefit recognized in additional paid in capital related to the non-cash compensation expense amounted to $3.0 million for the nine months ended September 30, 2015 (September 30, 2014: $1.8 million). |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2015 | |
Share Capital | 7. Share Capital Share Repurchase Program On May 1, 2015 the Company commenced a buyback program of up to $60 million under which the Company could acquire its outstanding ordinary shares (by way of redemption), in accordance with Irish law, the United States securities laws and the Company’s constitutional documents through open market share acquisitions. The buyback program gave a broker authority to acquire the Company’s ordinary shares from time to time on the open market in accordance with agreed terms and limitations. The acquisition of shares pursuant to the buyback program was effected by way of redemption and cancellation of the shares, in accordance with the Constitution of the Company. During the three months ended June 30, 2015, 882,419 ordinary shares were redeemed by the Company under the buyback program for a total consideration of $58.2 million. All ordinary shares that were redeemed under the buyback program were cancelled in accordance with the Constitution of the Company and the nominal value of these shares transferred to a capital redemption reserve fund as required under Irish Company Law. On July 31, 2015 the Company commenced a further buyback program of up to $400 million under which the Company could acquire its outstanding ordinary shares (by way of redemption), in accordance with Irish law, the United States securities laws and the Company’s constitutional documents through open market share acquisitions. The buyback program gives a broker authority to acquire the Company’s ordinary shares from time to time on the open market in accordance with agreed terms and limitations. The acquisition of shares pursuant to the buyback program was effected by way of redemption and cancellation of the shares, in accordance with the Constitution of the Company. During the three months ended September 30, 2015, 2,904,170 ordinary shares were redeemed by the Company under the buyback program for a total consideration of $229.5 million. All ordinary shares that were redeemed under the buyback program were cancelled in accordance with the Constitution of the Company and the nominal value of these shares transferred to a capital redemption reserve fund as required under Irish Company Law. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Business Segment Information | 8. Business Segment Information The Company determines and presents operating segments based on the information that is internally provided to the Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, who together are considered the Company’s chief operating decision makers, in accordance with FASB ASC 280-10 Disclosures about Segments of an Enterprise and Related Information The Company is a contract research organization (“CRO”), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. It specializes in the strategic development, management and analysis of programs that support all stages of the clinical development process - from compound selection to Phase I-IV clinical studies. The Company has the expertise and capability to conduct clinical trials in most major therapeutic areas on a global basis and has the operational flexibility to provide development services on a stand-alone basis or as part of an integrated “full service” solution. The Company has expanded predominately through internal growth, together with a number of strategic acquisitions to enhance its expertise and capabilities in certain areas of the clinical development process. The Company is generally awarded projects based upon responses to requests for proposals received from companies in the pharmaceutical, biotechnology and medical device industries or work orders executed under our strategic partnership arrangements. Contracts with customer are generally entered into centrally, in most cases with ICON Clinical Research Limited (“ICON Ireland”), the Company’s principal operating subsidiary in Ireland. Revenues, which consist primarily of fees earned under these contracts, are allocated to individual entities within the Group, based on where the work is performed in accordance with the Company’s global transfer pricing model. ICON Ireland acts as the group entrepreneur under the Company’s global transfer pricing model given its role in the development and management of the group, it’s ownership of key intellectual property and customer relationships, its key role in the mitigation of risks faced by the group and its responsibility for maintaining the Company’s global network. As such it enters into the majority of the Company’s customer contracts. ICON Ireland remunerates other operating entities in the ICON Group on the basis of a guaranteed cost plus mark up for the services they perform in each of their local territories. The cost plus mark up for each ICON entity is established to ensure that each of ICON Ireland and the ICON entities that are involved in the conduct of services for customers, earn an appropriate arms-length return having regard to the assets owned, risks borne, and functions performed by each entity from these intercompany transactions. The cost plus mark-up policy is reviewed annually to ensure that it is market appropriate. The geographic split of revenue disclosed for each region outside Ireland is the cost plus revenue attributable to these entities. The residual revenues of the Group, once each ICON entity has been paid its respective intercompany service fee, generally fall to be retained by ICON Ireland. As such revenues and income from operations in Ireland are a function of this global transfer pricing model and comprise net revenues of the Group after deducting the cost plus revenues attributable to the activities performed outside Ireland. The Company's areas of operation outside of Ireland include the United States, United Kingdom, France, Germany, Italy, Spain, The Netherlands, Sweden, Turkey, Poland, Czech Republic, Latvia, Russia, Ukraine, Hungary, Israel, Romania, Switzerland, Canada, Mexico, Brazil, Colombia, Argentina, Chile, Peru, India, China, South Korea, Japan, Thailand, Taiwan, Singapore, The Philippines, Australia, New Zealand, and South Africa. Segment information as at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and September 30, 2014 is as follows: a) The distribution of net revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (In thousands) (in thousands) Ireland $ 113,060 $ 99,585 $ 332,563 $ 273,670 Rest of Europe 79,077 91,350 241,705 275,881 U.S. 161,144 152,140 475,508 441,189 Rest of World 41,460 44,514 121,853 122,503 Total $ 394,741 $ 387,589 $ 1,171,629 $ 1,113,243 * All sales shown for Ireland are export sales. b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Ireland $ 56,612 $ 44,022 $ 153,620 $ 98,892 Rest of Europe 3,871 1,121 14,178 15,492 U.S. 8,129 10,871 30,576 27,211 Rest of World 2,773 3,409 7,817 9,114 Total $ 71,385 $ 59,423 $ 206,191 $ 150,709 c) The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, December 31, 2015 2014 (in thousands) Ireland $ 100,076 $ 95,574 Rest of Europe 8,309 10,419 U.S. 33,639 33,978 Rest of World 6,811 8,214 Total $ 148,835 $ 148,185 d) The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Ireland $ 5,144 $ 5,171 $ 14,972 $ 15,577 Rest of Europe 2,003 1,162 6,217 3,861 U.S. 6,277 6,533 18,412 16,146 Rest of World 942 871 2,934 2,623 Total $ 14,366 $ 13,737 $ 42,535 $ 38,207 e) The distribution of total assets by geographical area was as follows: September 30, December 31, 2015 2014 (in thousands) Ireland $ 618,393 $ 495,747 Rest of Europe 391,883 324,086 U.S. 746,332 648,559 Rest of World 56,184 60,458 Total $ 1,812,792 $ 1,528,850 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill | Nine months ended Year ended September 30, December 31, 2015 2014 (in thousands) Opening balance $ 463,324 $ 357,523 Current period acquisitions (Note 3) 115,180 121,209 Prior period acquisitions 4,418 - Foreign exchange movement (7,544 ) (15,408 ) Closing balance $ 575,378 $ 463,324 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
MediMedia Pharma Solutions | |
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s provisional estimates of the fair values of the assets acquired and liabilities assumed: February 27 2015 (In thousands) Property, plant and equipment $ 1,049 Goodwill* 115,180 Accounts receivable 5,240 Unbilled Revenue 4,324 Prepayments and other current assets 621 Accounts payable (749 ) Payments on account (4,186 ) Other liabilities (16,760 ) Net assets acquired $ 104,719 Cash consideration $ 120,000 Adjustments to cash consideration ** (11,283 ) Working capital adjustment (3,998 ) Net purchase consideration $ 104,719 * Goodwill represents the acquisition of an established workforce with experience in the provision of strategic payer-validated market access solutions while the acquisition of Complete Healthcare Communications comprises an established workforce with significant communication experience working with medical affairs, commercial and brand development teams within the life science industry. ** Adjustments to cash consideration represents certain one-time liabilities at the acquisition date which have subsequently been paid. |
Aptiv Solutions | |
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed May 7 2014 (In thousands) Property, plant and equipment $ 6,924 Goodwill* 125,627 Intangible asset – customer relationships 21,400 Intangible asset – order backlog 7,900 Cash and cash equivalents 3,484 Accounts receivable 25,091 Unbilled Revenue 21,154 Prepayments and other current assets 4,180 Non-current assets 2,911 Accounts payable ( 9,565 ) Other liabilities (26,782 ) Payments on account (31,094 ) Non-current other liabilities (11,303 ) Loan notes payable (20,790 ) Net assets acquired $ 119,137 Cash consideration $ 143,500 Adjustments to cash consideration ** (22,399 ) Working capital adjustment (1,964 ) Net purchase consideration $ 119,137 * Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. ** Adjustments to cash consideration represent certain one-time liabilities (including loan notes) identified at the acquisition date which have subsequently been paid. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes Recognized During Period | Income taxes recognized during the three and nine months ended September 30, 2015 comprise: Three Months Ended Nine Months Ended September September September September 30, 30, 30, 30, 2015 2014 2015 2014 (In thousands) (In thousands) Provision for income taxes $ 9,196 $ 9,216 $ 29,534 $ 23,577 |
Net income per ordinary share (
Net income per ordinary share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share | The reconciliation of the number of shares used in the computation of basic and diluted net income per ordinary share is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Weighted average number of ordinary shares outstanding for basic net income per ordinary share 58,659,782 61,878,429 59,728,608 61,863,332 Effect of dilutive share options outstanding 1,710,115 1,564,178 2,057,241 1,570,928 Weighted average number of ordinary shares for diluted net income per ordinary share 60,369,898 63,442,607 61,785,849 63,434,260 |
Share-based Awards (Tables)
Share-based Awards (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Stock Option Activity | The following table summarizes option activity for the nine months ended September 30, 2015: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life Outstanding at December 31, 2014 2,227,700 $ 28.00 $ 10.40 Granted 259,059 $ 68.25 $ 19.75 Exercised (686,467 ) $ 26.58 $ 10.18 Forfeited (64,842 ) $ 24.59 $ 9.48 Outstanding at September 30, 2015 1,735,450 $ 34.64 $ 11.91 4.85 Exercisable at September 30, 2015 695,902 $ 25.19 $ 9.71 3.51 |
Summary of Movement in Non-Vested Share Options | The following table summarizes the movement in non-vested share options for the nine months ended September 30, 2015: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Fair Value Non vested outstanding at December 31, 2014 1,203,150 $ 30.54 $ 10.98 Granted 259,059 $ 68.25 $ 19.75 Vested (379,992 ) $ 28.25 $ 10.49 Forfeited (42,669 ) $ 25.19 $ 10.20 Non vested outstanding at September 30, 2015 1,039,548 $ 40.97 $ 13.38 |
Weighted Average Fair Values and Assumptions Used | The weighted average fair values and assumptions used were as follows: Nine Months Ended September 30, September 30, 2015 2014 Weighted average fair value $ 19.75 $ 15.51 Assumptions: Expected volatility 30 % 31 % Dividend yield 0 % 0 % Risk-free interest rate 1.58 % 1.66 % Expected life 5 years 5 years |
RSU and PSU Activity | The following table summarizes RSU and PSU activity for the nine months ended September 30, 2015: PSU Outstanding Number of Shares PSU Weighted Average Fair Value PSU Weighted Average Remaining Contractual Life RSU Outstanding Number of Shares RSU Weighted Average Fair Value RSU Weighted Average Remaining Contractual Life Outstanding at December 31, 2014 669,171 $ 39.78 1.77 1,038,996 $ 35.19 1.67 Granted 283,394 $ 68.06 383,169 $ 66.94 Shares vested - - (227,805 ) $ 25.32 Forfeited (16,147 ) $ 42.73 (61,555 ) $ 41.85 Outstanding at September 30, 2015 936,418 $ 48.34 1.72 1,132,805 $ 47.55 1.67 |
Schedule of Non-cash Stock Compensation Expense | Non-cash stock compensation expense for the three and nine months ended September 30, 2015 has been allocated as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Direct costs $ 4,976 $ 3,661 $ 12,942 $ 9,034 Selling, general and administrative 4,055 2,984 11,101 7,362 Total compensation costs $ 9,031 $ 6,645 $ 24,043 $ 16,396 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Distribution of Net Revenue by Geographical Area | a) The distribution of net revenue by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (In thousands) (in thousands) Ireland $ 113,060 $ 99,585 $ 332,563 $ 273,670 Rest of Europe 79,077 91,350 241,705 275,881 U.S. 161,144 152,140 475,508 441,189 Rest of World 41,460 44,514 121,853 122,503 Total $ 394,741 $ 387,589 $ 1,171,629 $ 1,113,243 * All sales shown for Ireland are export sales. |
Distribution of Income from Operations by Geographical Area | b) The distribution of income from operations, including restructuring and other items, by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Ireland $ 56,612 $ 44,022 $ 153,620 $ 98,892 Rest of Europe 3,871 1,121 14,178 15,492 U.S. 8,129 10,871 30,576 27,211 Rest of World 2,773 3,409 7,817 9,114 Total $ 71,385 $ 59,423 $ 206,191 $ 150,709 |
Distribution of Property, Plant and Equipment, Net, by Geographical Area | c) The distribution of property, plant and equipment, net, by geographical area was as follows: September 30, December 31, 2015 2014 (in thousands) Ireland $ 100,076 $ 95,574 Rest of Europe 8,309 10,419 U.S. 33,639 33,978 Rest of World 6,811 8,214 Total $ 148,835 $ 148,185 |
Distribution of Depreciation and Amortization by Geographical Area | d) The distribution of depreciation and amortization by geographical area was as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 (in thousands) (in thousands) Ireland $ 5,144 $ 5,171 $ 14,972 $ 15,577 Rest of Europe 2,003 1,162 6,217 3,861 U.S. 6,277 6,533 18,412 16,146 Rest of World 942 871 2,934 2,623 Total $ 14,366 $ 13,737 $ 42,535 $ 38,207 |
Distribution of Total Assets by Geographical Area | e) The distribution of total assets by geographical area was as follows: September 30, December 31, 2015 2014 (in thousands) Ireland $ 618,393 $ 495,747 Rest of Europe 391,883 324,086 U.S. 746,332 648,559 Rest of World 56,184 60,458 Total $ 1,812,792 $ 1,528,850 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Opening balance | $ 463,324 | $ 357,523 |
Current period acquisitions (Note 3) | 115,180 | 121,209 |
Prior period acquisitions | 4,418 | |
Foreign exchange movement | (7,544) | (15,408) |
Closing balance | $ 575,378 | $ 463,324 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Mar. 25, 2015 | Feb. 27, 2015 | May. 07, 2014 | Sep. 30, 2015 | |
Aptiv Solutions | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 143,500,000 | ||||
Percentage of common stock acquired | 100.00% | ||||
Adjustments to cash consideration | [1] | $ 22,399,000 | |||
Working capital adjustment | $ 1,900,000 | $ 1,964,000 | |||
MediMedia Pharma Solutions | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 120,000,000 | ||||
Contingent cash consideration | 14,900,000 | ||||
Provisional amount on acquisition pending completion | 3,600,000 | $ 383,000 | |||
Adjustments to cash consideration | [2] | $ 11,283,000 | |||
[1] | Adjustments to cash consideration represent certain one-time liabilities (including loan notes) identified at the acquisition date which have subsequently been paid. | ||||
[2] | Adjustments to cash consideration represents certain one-time liabilities at the acquisition date which have subsequently been paid. |
Summary of Estimates of Fair Va
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of MediMedia Pharma Solutions (Detail) - USD ($) $ in Thousands | Feb. 27, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 575,378 | $ 463,324 | $ 357,523 | ||
MediMedia Pharma Solutions | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment | $ 1,049 | ||||
Goodwill | [1] | 115,180 | |||
Accounts receivable | 5,240 | ||||
Unbilled Revenue | 4,324 | ||||
Prepayments and other current assets | 621 | ||||
Accounts payable | (749) | ||||
Payments on account | (4,186) | ||||
Other liabilities | (16,760) | ||||
Net assets acquired | 104,719 | ||||
Cash consideration | 120,000 | ||||
Adjustments to cash consideration | [2] | (11,283) | |||
Working capital adjustment | (3,998) | ||||
Net purchase consideration | $ 104,719 | ||||
[1] | Goodwill represents the acquisition of an established workforce with experience in the provision of strategic payer-validated market access solutions while the acquisition of Complete Healthcare Communications comprises an established workforce with significant communication experience working with medical affairs, commercial and brand development teams within the life science industry. | ||||
[2] | Adjustments to cash consideration represents certain one-time liabilities at the acquisition date which have subsequently been paid. |
Summary of Estimates of Fair 24
Summary of Estimates of Fair Values of Assets Acquired and Liabilities Assumed of Aptiv Solutions (Detail) - USD ($) $ in Thousands | Mar. 25, 2015 | May. 07, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 575,378 | $ 463,324 | $ 357,523 | |||
Aptiv Solutions | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment | $ 6,924 | |||||
Goodwill | [1] | 125,627 | ||||
Cash and cash equivalents | 3,484 | |||||
Accounts receivable | 25,091 | |||||
Unbilled Revenue | 21,154 | |||||
Prepayments and other current assets | 4,180 | |||||
Non-current assets | 2,911 | |||||
Accounts payable | (9,565) | |||||
Other liabilities | (26,782) | |||||
Payments on account | (31,094) | |||||
Non-current other liabilities | (11,303) | |||||
Loan notes payable | (20,790) | |||||
Net assets acquired | 119,137 | |||||
Cash consideration | 143,500 | |||||
Adjustments to cash consideration | [2] | (22,399) | ||||
Working capital adjustment | $ (1,900) | (1,964) | ||||
Net assets acquired/Net purchase consideration | 119,137 | |||||
Aptiv Solutions | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset | 21,400 | |||||
Aptiv Solutions | Order Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Intangible asset | $ 7,900 | |||||
[1] | Goodwill represents the acquisition of an established workforce with experience in clinical trial consulting and regulatory support for the development of drugs, medical devices and diagnostics, with a specific focus on strategy to increase efficiency and productivity in product development. Goodwill related to the US portion of the business acquired is tax deductible. | |||||
[2] | Adjustments to cash consideration represent certain one-time liabilities (including loan notes) identified at the acquisition date which have subsequently been paid. |
Income Taxes Recognized During
Income Taxes Recognized During Period (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reconciliation of Provision of Income Taxes [Line Items] | ||||
Provision for income taxes | $ 9,196 | $ 9,216 | $ 29,534 | $ 23,577 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Liability for unrecognized tax benefit | $ 28.6 | $ 25.6 |
Items generating unrecognized tax benefits | 25.6 | 23.2 |
Interest and related penalties | $ 3 | $ 2.4 |
Earliest Tax Year | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Tax year subject to examination by major tax jurisdictions | 2,009 | |
Latest Tax Year | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Tax year subject to examination by major tax jurisdictions | 2,014 |
Reconciliation of Number of Sha
Reconciliation of Number of Shares Used in Computation of Basic and Diluted Net Income Per Ordinary Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||||
Weighted average number of ordinary shares outstanding for basic net income per ordinary share | 58,659,782 | 61,878,429 | 59,728,608 | 61,863,332 |
Effect of dilutive share options outstanding | 1,710,115 | 1,564,178 | 2,057,241 | 1,570,928 |
Weighted average number of ordinary shares outstanding for diluted net income per ordinary share | 60,369,898 | 63,442,607 | 61,785,849 | 63,434,260 |
Share-based Awards - Additional
Share-based Awards - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Apr. 23, 2013 | |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Non-cash stock compensation expense not yet recognized | $ 57,700 | |||
Unrecognized stock-based compensation expense, weighted average period (years) | 2 years 6 months | |||
Tax benefit on exercise of options | $ 3,014 | $ 1,800 | ||
Employee Stock Plan, 2008 Plan | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 6,000,000 | |||
Employee Stock Plan, 2008 Plan | Individual Employee | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 400,000 | |||
Employee Stock Plan, 2008 Plan | Minimum | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Percentage of option price for fair value of ordinary share | 100.00% | |||
Employee Stock Plan, 2003 Plan | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 6,000,000 | |||
Maximum number of award as percentage of shares outstanding | 10.00% | |||
Employee Stock Plan, 2003 Plan | Individual Employee | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 400,000 | |||
Employee Stock Option | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Shares vesting period | 5 years | |||
Shares expiration period | 8 years | |||
Contractual term of options outstanding | 4 years 10 months 6 days | |||
Weighted average fair value per option | $ 11.91 | $ 10.40 | ||
Exercisable - number of shares | 695,902 | |||
Exercisable - weighted average remaining contractual life | 3 years 6 months 4 days | |||
Exercisable - weighted average exercise price | $ 25.19 | |||
Fully vested total intrinsic value | $ 31,900 | |||
Intrinsic value of option exercised | $ 30,500 | $ 18,200 | ||
Employee Stock Option | Minimum | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Options outstanding fair value | $ 5.88 | |||
Employee Stock Option | Maximum | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Contractual term of options outstanding | 8 years | |||
Options outstanding fair value | $ 19.78 | |||
Restricted Stock Units 2008 | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 1,000,000 | |||
Restricted Stock Units 2013 | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Ordinary shares which have been reserved for issuance | 1,600,000 | |||
Performance Share Unit (PSUs) | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Shares vesting period | 3 years | |||
Outstanding - number of shares | 936,418 | 669,171 | ||
Performance Share Unit (PSUs) | Vest Upon the Achievement of EPS Performance Targets | ||||
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ||||
Shares expected to vest - number of shares | 467,991 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Options Outstanding Number of Shares | ||
Outstanding at beginning of period | 2,227,700 | |
Granted | 259,059 | |
Exercised | (686,467) | |
Forfeited | (64,842) | |
Outstanding at end of period | 1,735,450 | |
Exercisable at end of period | 695,902 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | $ 28 | |
Granted | 68.25 | |
Exercised | 26.58 | |
Forfeited | 24.59 | |
Outstanding at end of period | 34.64 | |
Exercisable at end of period | 25.19 | |
Weighted Average Fair Value | ||
Outstanding at beginning of period | 10.40 | |
Granted | 19.75 | $ 15.51 |
Exercised | 10.18 | |
Forfeited | 9.48 | |
Outstanding at end of period | 11.91 | |
Exercisable at end of period | $ 9.71 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 4 years 10 months 6 days | |
Exercisable at end of period | 3 years 6 months 4 days |
Summary of Movement in Non-Vest
Summary of Movement in Non-Vested Share Options (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Options Outstanding Number of Shares | ||
Beginning Balance | 1,203,150 | |
Granted | 259,059 | |
Vested | (379,992) | |
Forfeited | (42,669) | |
Ending Balance | 1,039,548 | |
Weighted Average Exercise Price | ||
Beginning balance | $ 30.54 | |
Granted | 68.25 | |
Vested | 28.25 | |
Forfeited | 25.19 | |
Ending balance | 40.97 | |
Weighted Average Fair Value | ||
Beginning Balance | 10.98 | |
Granted | 19.75 | $ 15.51 |
Vested | 10.49 | |
Forfeited | 10.20 | |
Ending Balance | $ 13.38 |
Schedule of Weighted Average Fa
Schedule of Weighted Average Fair Values and Assumptions Used (Detail) - Employee Stock Option - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value | $ 19.75 | $ 15.51 |
Assumptions: | ||
Expected volatility | 30.00% | 31.00% |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 1.58% | 1.66% |
Expected life | 5 years | 5 years |
Summary of RSU and PSU Activity
Summary of RSU and PSU Activity (Detail) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Performance Share Unit (PSUs) | |
Outstanding Number of Shares | |
Outstanding at beginning of period | shares | 669,171 |
Granted | shares | 283,394 |
Forfeited | shares | (16,147) |
Outstanding at ending of period | shares | 936,418 |
Weighted Average Fair Value | |
Outstanding at beginning of period | $ 39.78 |
Granted | 68.06 |
Forfeited | 42.73 |
Outstanding at end of period | $ 48.34 |
Weighted Average Remaining Contractual Life | |
Outstanding at end of period | 1 year 8 months 19 days |
Restricted Stock Units (RSUs) | |
Outstanding Number of Shares | |
Outstanding at beginning of period | shares | 1,038,996 |
Granted | shares | 383,169 |
Shares vested | shares | (227,805) |
Forfeited | shares | (61,555) |
Outstanding at ending of period | shares | 1,132,805 |
Weighted Average Fair Value | |
Outstanding at beginning of period | $ 35.19 |
Granted | 66.94 |
Shares vested | 25.32 |
Forfeited | 41.85 |
Outstanding at end of period | $ 47.55 |
Weighted Average Remaining Contractual Life | |
Outstanding at end of period | 1 year 8 months 1 day |
Schedule of Non-cash Stock Comp
Schedule of Non-cash Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 9,031 | $ 6,645 | $ 24,043 | $ 16,396 |
Direct costs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 4,976 | 3,661 | 12,942 | 9,034 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 4,055 | $ 2,984 | $ 11,101 | $ 7,362 |
Share Capital - Additional Info
Share Capital - Additional Information (Detail) - Buyback Program - USD ($) | 3 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Jul. 31, 2015 | May. 01, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 400,000,000 | $ 60,000,000 | ||
Ordinary shares redeemed | 2,904,170 | 882,419 | ||
Ordinary shares redeemed, value | $ 229,500,000 | $ 58,200,000 |
Distribution of Net Revenue by
Distribution of Net Revenue by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net Revenue | $ 394,741 | $ 387,589 | $ 1,171,629 | $ 1,113,243 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 113,060 | 99,585 | 332,563 | 273,670 |
Rest Of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 79,077 | 91,350 | 241,705 | 275,881 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | 161,144 | 152,140 | 475,508 | 441,189 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenue | $ 41,460 | $ 44,514 | $ 121,853 | $ 122,503 |
Distribution of Income from Ope
Distribution of Income from Operations, including Restructuring and Other Items, by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 71,385 | $ 59,423 | $ 206,191 | $ 150,709 |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 56,612 | 44,022 | 153,620 | 98,892 |
Rest Of Europe | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 3,871 | 1,121 | 14,178 | 15,492 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 8,129 | 10,871 | 30,576 | 27,211 |
Rest of World | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | $ 2,773 | $ 3,409 | $ 7,817 | $ 9,114 |
Distribution of Property, Plant
Distribution of Property, Plant and Equipment, Net, by Geographical Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 148,835 | $ 148,185 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 100,076 | 95,574 |
Rest Of Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 8,309 | 10,419 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 33,639 | 33,978 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 6,811 | $ 8,214 |
Distribution of Depreciation an
Distribution of Depreciation and Amortization by Geographical Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Disclosure [Line Items] | ||||
Depreciation and amortization | $ 14,366 | $ 13,737 | $ 42,535 | $ 38,207 |
Ireland | ||||
Segment Reporting Disclosure [Line Items] | ||||
Depreciation and amortization | 5,144 | 5,171 | 14,972 | 15,577 |
Rest Of Europe | ||||
Segment Reporting Disclosure [Line Items] | ||||
Depreciation and amortization | 2,003 | 1,162 | 6,217 | 3,861 |
United States | ||||
Segment Reporting Disclosure [Line Items] | ||||
Depreciation and amortization | 6,277 | 6,533 | 18,412 | 16,146 |
Rest of World | ||||
Segment Reporting Disclosure [Line Items] | ||||
Depreciation and amortization | $ 942 | $ 871 | $ 2,934 | $ 2,623 |
Distribution of Total Assets by
Distribution of Total Assets by Geographical Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,812,792 | $ 1,528,850 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Assets | 618,393 | 495,747 |
Rest Of Europe | ||
Segment Reporting Information [Line Items] | ||
Assets | 391,883 | 324,086 |
United States | ||
Segment Reporting Information [Line Items] | ||
Assets | 746,332 | 648,559 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 56,184 | $ 60,458 |